Trump to Kneeling NFL Players: Tell Me Who I Should Pardon

President Donald Trump appears to have heard the applause he received for pardoning Alice Johnson, the 63-year-old who served more than two decades in prison for a nonviolent drug offense before Trump commuted her life sentence this week.

Now Trump says he wants to issue more pardons—not just for politically aligned celebrities but for real people who have been unfairly imprisoned. And he says he wants input from players in the National Football League who have been protesting the national anthem. Yes, really.

“I am going to ask them to recommend to me people that were unfairly treated” by the justice system, Trump said to reporters outside the White House this morning. “And I am going to take a look at those applications.”

If those people have been unfairly treated by the system, Trump said, his administration would seek to “pardon them, or at least let them out.” He said the offer was an opportunity for the national anthem protests to be more than just talk.

It’s worth noting that the anthem protests began two years ago as a way to raise public awareness about innocent African Americans killed by cops. That’s something that even the mighty power of the presidential pardon can’t fix.

Whether Trump’s offer helps reduce tensions between the president and professional football players has yet to be seen. It’s also somewhat beside the point. If it opens a dialogue, great. The more important development here is Trump’s apparent willingness to embrace the presidential pardon as the ultimate check on America’s runaway incarceration problem (even though the president has, at other times, embraced ideas that cut the other way).

Even without input from NFL players, Trump will likely be issuing more pardons in the near future. The administration has prepared the pardoning paperwork for at least 30 people, CNN reported Wednesday.

“There will be more pardons,” Trump said Friday morning. Specifically, Trump said he was considering a pardon for the late boxer Muhammad Ali—who already had his conviction for draft evasion overturned by the Supreme Court—along with “some others, some folks who have sentences that are unfair.”

“We hope the president acts boldly here,” says Kevin Ring, president of Families Against Mandatory Minimums.

Ring praised Trump for doing the right thing by commuting Johnson’s sentence. “There are thousands of others who received excessive sentences, who pose no threat to public safety any longer, and deserve the same chance to rejoin their families and resume their lives,” he tells Reason.

Trump has spent most of his first year and a half in office being frustrated by the limits of presidential power. Even though the modern presidency is far more powerful than the Constitution appears to allow, Trump has learned repeatedly that his word isn’t always law. Executive orders can be held up in court, repealing Obamacare or overhauling the tax code requires congressional assent, and shifting trade policy requires investigations, reports, and hearings. For all the ink that has been spilled about Trump upending the rule of law, the systems designed to check presidential ambitions (at least the ones that Congress hasn’t deliberately kneecapped over the years) still work pretty well.

But the power of the pardon is different. It’s a virtually unchecked—and completely constitutional—tool of the presidency. Trump can wield it pretty much however he chooses, as he seems to be figuring out. (For now, let’s set aside the question of whether Trump has the authority to pardon himself, something he reiterated this morning that he thinks he has the authority to do.)

“The pardons are a very positive things for a president,” Trump said Friday. “The power to pardon is a beautiful thing.”

Already, the media is thick with conspiracy theories about Trump’s sudden interest in the power of the pardon. Maybe Trump is doing this to create a better case for pardoning anyone caught up in Robert Mueller’s investigation. Maybe he’s doing this to impress Kim Kardashian. Maybe he’s doing it to piss off Attorney General Jeff Sessions.

I don’t know. And I’m willing to bet that if the name of one of your loved ones was on the list Trump says he’s reviewing, you wouldn’t care.

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Greece Is No Longer The Ugliest PIIG In Europe

For the first time since July 2007, Greece is no longer the ugliest PIIGS nation in Europe.

The last week has seen Italy sell 5.5 billion euros worth of 183-day bills at an average yield of 1.213% (the worst since Feb 2013) and Greece sell 1.625 billion euros worth of 183-day bills at an average yield of 0.85% (near its lowest since Oct 2009); meaning that Italian short-dated debt is perceived as more risky than Greece for the first time in almost 11 years

European traders are noting that the front page of Italy’s Corriere Della Sera is highlighting this historic moment for Italian risk…

Notably, Italy’s next sale is scheduled for June 12 so prepare for more negative headlines if those yields stay elevated.

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Dennis Rodman Says He Is Going To North Korea Summit After All

Former NBA player Dennis Rodman – one of the few people in the world who has met both President Donald Trump and North Korean leader Kim Jong Un – says he will travel to Singapore for the upcoming US-North Korea summit after all, Rodman’s agent, Darren Prince, confirmed to CNN.

Rodman

“He is willing to offer his support for his friends, President Trump and Marshall Kim Jong Un,” Prince said.

The Hall of Famer briefly posted the announcement on Instagram Friday morning, though he quickly deleted it. 

“Thanks to my loyal sponsors from @potcoin and my team at @princemarketinggroup , I will be flying to Singapore for the historical Summit. I’ll give whatever support is needed to my friends, President Trump and Marshall Kim Jong Un.”

Earlier this week, the New York Post reported that Rodman would be attending the summit, only for Rodman’s agent to deny the report.  

Rodman has traveled to North Korea several times (Kim is said to be a fan of the 1990s Chicago Bulls).

Of course, the White House has said that Rodman wouldn’t be going – which means, if he is, he won’t be a part of Trump’s entourage.

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Republican John Cox Survived California’s Wild Primary by Running a Quietly Intriguing Campaign: New at Reason

These days, it’s accepted wisdom that—after 20 years of political and demographic changes—California is a one-party state and that Republicans can do well only in a narrowing group of legislative and local races. New figures show that Republicans now trail independents in the registration game, which has got to hurt the party’s image. And, most strikingly, the GOP has a tough time fielding top-tier candidates to run for the plum governor’s spot.

California did have a two-term Republican governor named Arnold Schwarzenegger, who preceded Jerry Brown’s return to power in 2011. That was fewer than eight years ago, although Schwarzenegger was an outlier—a moderate Republican movie star who won a free-for-all election after a bizarre recall of a sitting governor. Even then, however, it was already an accepted belief that the GOP needed big-name celebrity candidates to have a shot any more.

This year, ironically, it’s a buttoned-down, little-known businessman named John Cox who is shaking up the race in a relatively new “top two” system that had everyone fighting for the second spot. (The top two vote-getters in the June primary face off in the November general election, regardless of their party affiliation.) Cox surged past former Los Angeles Mayor Antonio Villaraigosa and on Tuesday and gained the right to challenge Lt. Gov. Gavin Newsom, despite massive spending on attack ads by a Super PAC funded by Villaraigosa backers. Newsom had 33 percent of the vote, with Cox gaining 26 percent. Villaraigosa was in third with less than 14 percent.

Stephen Greenhut sat down with Cox this week to ask whether the Republican has a hope of winning the governorship this year.

Read the whole thing here.

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“It’s Just Like 1998”: One Bank Is Haunted By Visions Of Credit Tremors Bursting The Tech Bubble

Earlier this week, Goldman Sachs, whose market-timing calls leave much to be desired, declared that tech stocks are “not a bubble”, and went so far as to predict that the secular increase in tech names could continue for decades, spawning vivid memories of Goldman predicting $200 oil months before the start of the second great depression, and before oil crashed by $100/barrel, wiping out a generation of muppets.

However, let’s just say that not everyone agrees with Goldman.

Back in March, just as the tech sector suffered its first big rout of 2018, Bank of America had the gall to tell the truth and observe that the “e-Commerce” sector, which consists of AMZN, NFLX, GOOG, TWTR, EBAY, FB, was now up 617% since the financial crisis, making it the 3rd largest bubble of the past 40 years, and at this rate – assuming no major drop in the 6 constituent stocks – was set to become the largest bubble of all time over the next few months.

Fast forward to today, when in a dual-pronged attack, Goldman’s ridiculous thesis was attacked again not once but twice, first by Leuthold Group’s Jim Paulsen who said that tech ETFs now account for 30% of trailing 2 year net fund flows, which was the biggest since – you guessed it – the dot-com bubble. Paulsen, who traditionally has had a cheerful, bullish take on markets, even went so far as to slam FANGs as the de facto harbinger of the next tech bubble:

“Haven’t we seen this movie before? Technology takes over the stock market late in a recovery cycle, seemingly making the bull ageless, pushing portfolios toward a more concentrated new-era exposure, stimulating investor greed bolstered daily by watching a chosen few (FANGs) rise to new heights, and convincing many that tech is really a defensive investment against late-cycle pressures which trouble other investments.”

A separate report from Bank of America’s Michael Hartnett confirms Paulsen’s fears. In his latest “flow show” report, the BofA CIO writes that in a year that has seen $140BN of inflows into stocks and $55BN into bonds, there have been 4 big flow losers in the second quarter:

  1. HY bonds (redemptions >$15bn),
  2. IG bonds ($2.2bn this week, largest since Dec’16),
  3. Emerging Markets (redemptions >$10bn in EM debt + equity past 6 weeks),
  4. European equities (redemptions >$33bn past 13 weeks)

However, more than offsetting this is, of course, the tech sector which has been the “big flow winner in Q2″ with another $2.3bn in inflows this week – the 2nd biggest week of inflows ever – and $17.3bn YTD on pace for record.


No doubt, much of this has been the result of momentum and self-fulfilling prophecies such as Goldman’s prediction that all is well. The result is that while numerous other assets have been hit badly already in 2018, including:

  • Brazil (EWZ) -34%,
  • Eurozone banks (SX7E) -29%,
  • Chinese real estate (SHPROP) -26%,
  • Argentine peso (ARS) -25%,
  • Turkish lira (TRY) -25%…

… which are all hedge fund “leverage plays”, meanwhile FAANG stocks are up +29% as investors pursue scarce secular growth, in the process turbo-charging the 9-year “conscious decoupling” of US tech & growth from EM/EU
leverage & value, just as what happened in 1998-99. We all know how that ended.

In any case, so far it has been so good for FAANG and tech names, which have successfully charged right through every wobble, hitting new all time highs as recently as Wednesday, with the “conscious decoupling” from the rest of the world seemingly unstoppable.

But it will stop, and BofA sees the end as soon as this summer, which is full of “event risk”:

  • June 8th = G7 meeting “Quebec Discord” on trade policy huge contrast with “Shanghai Accord” on credit stimulus 2016
  • June 12th = Trump-Kim summit Singapore
  • June 13th = FOMC…Fed expected to hike 25bps, but no change in dot plot
  • June 14th = ECB meeting…ECB could announce QE tapering begins Sept
  • June 22nd = OPEC…OPEC expected to raise crude production
  • June 28th = EU summit

As Hartnett writes, we are headed right into bad summer news for risk assets, first and foremost the vanishing of the QE security blanket.

As a result, investors are targeting weak credit stories, with a focus on Emerging Markets, which are now in a tightening cycle, which as shown in the chart below, have undergone 33 rate hikes past 9 months… 

… and the ECB (who else?) threatening a QE taper policy mistake in autumn.

As such, the return of “a true summer bid for distressed EM/EU” requires big stuff, including:

  • May China export growth >12% YoY to allay fears Asia export slowdown (Chart 5) precipitates China FX depreciation (very EM negative)
  • EU concessions to Italy (since 2000, German GDP +24%, Italy +4% – Chart 6; note German youth unemployment rate = 4%, in Italy it’s 33%)
  • Consensus “higher US yields/US dollar/crude oil” trade reverses (CTFC data show HFs/CTAs 1.9sd long oil, 1.4sd short 10yr Treasuries)

That’s the bullish case. Meanwhile, according to BoFa, “the big risk is, as in 1998, credit tremors spread and investors forced to deleverage from risk assets, raise cash (private client cash levels at new lows of 9.9%).”

But to Hartnett, and going back to the tech bubble theme, the biggest risk  is a “quick, deep tech selloff as investors continue to run an unambiguous barbell – “owning deflation, trading inflation”, “owning US, trading RoW”, “owning tech, trading everything else” – and that when investors delever, they can only sell what they own.

Or, as Bloomberg’s Andrew Cinko puts it, “if the times get tough and investors must delever they will sell “what they own,” as BofA says. Those who are rotating to financials and banks this week and away from tech may simply be trading the frying pan for the fire.

Putting it all together, Hartnett stance remains unchanged:

We remain defensive & happy to sell risk assets into strength until the Fed forced to pause.

Or, translated: sell, or simply stay out, until stocks crash, then buy ahead of the next Fed easing/QE cycle.

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Anthony Bourdain, Lover of Food and Enemy to All Tyrants, Has Died

Anthony Bourdain, host of the food and travel shows Parts Unknown and No Reservations, author of the imminently readable memoir Kitchen Confidential, and friend of this magazine, was found dead of an apparent suicide Friday in a hotel room in France. He was 61.

The reactions on social media seem—for now, at least—to be universally sorrowful, which speaks to the joy and intensity and courage he exuded as an ambassador for both American brashness and a unique kind of culinary cultural relativism.

He was a proponent of peace and free exchange who used his platform to redirect America’s attention to the places we ravaged and then forgot about. He loved Vietnam, Laos, and Cambodia; he despised Henry Kissinger.

Bourdain was also a friend of liberty at home and, in his later years, an increasingly empathetic person. In an interview he gave to Reason shortly after Donald Trump was elected president, he expressed not just displeasure with the outcome but compassion for people who felt Trump could save them from something:

When people are afraid and feel that their government has failed them they do things that seem completely mad and unreasonable to those of who are perhaps under less pressure. As unhappy and surprised as I am with the outcome, I’m empathetic to the forces that push people towards what I see as an ultimately self-destructive act. Berlusconi, Putin, Duterte, the world is filled with bad choices, made in pressured times.

In that same interview he gave a nuanced response to the animal rights activists who have chided him for his nonjudgmental approach to cultures where animals are treated poorly:

One thing I constantly found in my travels, which is ignored by animal activism, is that where people live close to the edge, they are struggling to feed their families, and are living under all varieties of pressures that are largely unknown to these activists personally. Where people are suffering, animals who live in their orbit are suffering terribly. In cultures where people don’t have the luxury of considering the feelings of a chicken, they tend to treat them rather poorly. Dogs do not live good lives in countries where people are starving and oppressed. Maybe if we spent a little of [our] attention on how humans live, I think as a consequence many of these people would have the luxury to think beyond their immediate needs, like water to drink and wash, and food to live. A little more empathy for human beings to balance out this overweening concern for puppies would be a more moral and effective strategy.

In the last year, he became a staunch supporter of women who have survived sexual assault and harassment, not because he’s a saint but because he “met one extraordinary woman with an extraordinary and painful story, who introduced [him] to a lot of other women with extraordinary stories and suddenly it was personal.” His alignment with the #MeToo movement came with a healthy dose of public regret about the times throughout his career in which he turned a blind eye to female friends and coworkers who were mistreated by men in the food industry.

He also believed in the First Amendment, regardless of what the speaker had to say. “I support your inalienable right to say really stupid, offensive shit and believe really stupid, offensive shit that I don’t agree with,” Bourdain said when Boston Mayor Tom Menino pledged to ban Chik-fil-A from his city because company president Dan Cathy opposed same-sex marriage. “I support that [right], and I might even eat your chicken sandwich.”

He despised food nannies, telling Reason contributor Baylen Linnekin in 2006 that Chicago’s foie gras ban was a waste of concern. “You know, we’re force-feeding people in Guantanamo Bay and there are people worrying that we’re feeding a duck too much?” (Check out our Bourdain archives here.)

In 2007, he spoke with Reason.tv about the government’s efforts to “infantilize” consumers via food regulations and his “libertarian instincts.”

Bourdain also praised the immigrant work ethic—another reason it is so devastating to lose him now. In 2000’s Kitchen Confidential, he wrote about the essential role immigrants have played in the evolution of America’s food scene and how America has benefited by providing opportunities to people fleeing war and poverty. The “exile” class of line cooks—”Refugees, usually emigres and immigrants for whom cooking is preferable to death squads, poverty or working in a sneaker factory for two dollars a day”—were some of his favorite characters in the kitchen. He even preferred them to culinary masterminds:

When a job applicant starts telling me how Pacific Rim cuisine turns him on and inspires him, I see trouble coming. Send me another Mexican dishwasher anytime. I can teach him to cook. I can’t teach character. Show up at work on time six months in a row and we’ll talk about red curry paste and lemongrass. Until then, I have four words for you: “Shut the fuck up.”

There’s so much more to say about Bourdain’s legacy, but I think I’m going to heed his advice. He never was one for self-aggrandizement.

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Pat Buchanan Asks: “Is Mayor de Blasio An Anti-Asian Bigot?”

Authored by Patrick Buchanan via Buchanan.org,

“Though New York City has one of the most segregated schools systems in the country,” writes Elizabeth Harris of The New York Times, until now, Mayor Bill de Blasio “was all but silent on the issue.”

He was “reluctant even to use the word ‘segregation.’”

Now the notion that the liberal mayor belongs in the same basket as Southern governors in the ’50s and ’60s like Orval Faubus of Arkansas and Ross Barnett of Mississippi seems a bit of a stretch.

For what Harris means by “segregation” is that in the city’s eight most prestigious schools, like Stuyvesant High School and the Bronx School of Science, where admission is by written test, the makeup of the student body does not remotely resemble the racial diversity of the city.

“Black and Hispanic students make up nearly 70 percent of the city’s public school students,” writes Harris, “but they received just 10 percent of offers for seats at specialized schools this fall.”

“About 27 percent of the offers went to white students who make up 15 percent of the student system; 52 percent went to Asian students, who up make 16 percent.”

Harris later adjusted her numbers. Asians are 62 percent of students. At Stuyvesant, only 10 of 900 students being admitted this fall are black.

At Stuyvesant, The Wall Street Journal writes, “2.8 percent of students are Latino and 0.69 percent are black. But 72.9 percent are Asian-American.”

Harris decries this as “extreme school segregation.”

De Blasio now demands change: “We must be sure that the very best high schools are open to … every kind of New Yorker.” The student bodies at the elite public schools “need to look like New York City.”

Translation: We must have more Hispanic and black students, and if that means throwing out the entrance exam to cut the numbers of Asians and whites, throw out the exam.

Soo Kim, president of the Stuyvesant alumni association, is having none of it:

“Correct me if I’m wrong, but they’re saying these schools are too Asian, so there must be something wrong. … Am I the only one who looks at that and says, ‘I don’t understand how that’s even legal.’”

Councilman Peter Koo took it straight to the mayor:

“The test is the most unbiased way to get into a school.

…It doesn’t require a resume. It doesn’t even require connections. The mayor’s son just graduated from Brooklyn Tech and got into Yale. Now he wants to stop this and build a barrier to Asian-Americans — especially our children.”

“I’m not sure if the mayor is a racist,” says Kenneth Chiu, chairman of the New York City Asian-American Democratic Club, “but this policy is certainly discriminatory.”

As Asians demonstrated this week against changing admissions standards to reduce the number of Asian students, schools chancellor Richard Carranza gave them the back of his hand:

“I just don’t buy into the narrative that any one ethnic group owns admissions to these schools.”

Yet it is Carranza and De Blasio who are claiming an entitlement to seats at the schools based on race. The Asian protesters are insisting on maintaining merit and performance, measured by tests, as the standard of admission.

This issue is not confined to New York. It has gone national and pits Asian-Americans who believe in and benefit from a meritocracy in education against egalitarians who embrace race quotas and affirmative action to bring about a greater equality of rewards.

That Asians are the new victims of race discrimination seems undeniable. In August, the Times reported:

“A Princeton study found that students who identify as Asian need to score 140 points higher on the SAT than whites to have the same chance of admission to private colleges, a difference some have called ‘the Asian tax.’

“A lawsuit cites Harvard’s Asian-American enrollment at 18 percent in 2013, and notes very similar numbers ranging from 14 to 18 percent at other Ivy League colleges, like Brown, Columbia, Cornell, Princeton and Yale.”

Now, compare the numbers from California:

“In the same year (2013), Asian-Americans made up 34.8 percent of the student body at the University of California, Los Angeles, 32.4 percent at Berkeley and 42.5 percent at Caltech.”

Among possible reasons for the racial disparities: In 1996, by voter referendum, Californians outlawed racial preferences.

What the Ivy League is doing may be criminal in the Golden State.

In 1965, in words written by Richard Goodwin who died last month, and delivered at Howard University, LBJ declared:

“This is the next and the more profound stage of the battle for civil rights. We seek not just … equality as a right and a theory but equality as a fact and equality as a result.”

In today’s clash in liberalism’s citadel over which races have too many seats at Brooklyn Tech and Stuyvesant, and which races have too few, we get a glimpse of America’s future.

It appears to be a future of endless collisions and conflicts over who deserves and who gets what — based upon ethnicity and race.

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Nomura Warns, Emerging Market “Butterflies Are Flapping Their Wings”

While The Fed has shifted from QE to QT and a policy of broad “financial conditions tightening” has been driving the “rolling volatility events” of 2018 – with the potential for a “hawkish hike” next week causing more agitation – Nomura’s Charlie Mcelligott notes that currently the most acute stress is seen in illiquid EM (long- and carry- unwind), with the daisy-chain moving from Argentina and Turkey to Brazil yesterday and now, more “indiscriminately” across the spectrum “spilling over” into a mini-equities quant unwind.

As discussed numerous times previously by Mcelligott, a multi-year low in UST  term-premium reversed and broke higher in the days immediately following the first-passage of US tax reform back in early Dec ’17 – as the market determined that “visibility” on the path of interest rates was effectively “shocked lower” meaning interest rate volatility HIGHER going-forward – as we added massive fiscal stimulus into an already “hot” economy so late in the cycle.

As interest rates were the vehicle by-which the Fed dictated the post-crisis response (ZIRP and LSAP / QE) in order to drive financial asset inflation and create a “wealth effect,” disruption to the former “rates suppression” regime would inevitably lead to higher cross-asset volatilities… and that it did.

Within the next two weeks / by mid-Dec ‘17 , S&P 500 12m fwd EPS peaked and rolled; cryptocurrencies peaked and were hammered thereafter; from mid-January to start February, we saw the MOVE index of swaption implied interest rate vol nearly double in less than a month; thereafter, we experienced the leveraged “short vol” ETN termination event of Feb 5th; and more recently, we’ve seen “liquidity events” across the Credit and Fixed-Income spectrum, from liquidation spasms in BTPs last week (Italy just paid more than Greece to borrow 183 day bills, btw) to even “the most liquid security in the world,” as experienced by USTs last Tuesday and again yesterday (“Flash Rallies”).

[ZH: And yesterday’s chaos in Treasuries suggests the liquidity is very much missing…

“What happened yesterday was alarming, and further underscores for me how ephemeral the nominal liquidity is becoming…” — RJ O’Brien’s John Brady, on Thursday’s treasury squeeze.]

However, the “constant” has been Emerging Market stress.  EM “vol events” are a “fact of nature” in Fed tightening cycles.  One month ago it was Argentina, then Turkey (both ongoing)…most recently yesterday, the failed interventions in Brazil escalated the already precarious state-of-affairs within the country, while this morning it seems the EM selling has become more indiscriminate, with ZAR, INR, PLN, RUB, KRW, MXN, HUF showing the “bleed.”  This is classic carry-trade unwind, with massive inflows over the prior multi-year “suppressed vol” regime finding very “skinny exits” on the way out.

But as some might look at these cross-asset events as “idiosyncratic,” therein lies the risk.  Yesterday within the relatively “liquid” U.S. equities space, we saw enormous pain under the hood on widespread reversals across recent thematic trends, factor behavior and popular positioning. 

Is it possible that some of this “butterfly flapping its wings” distress in formerly ultra-crowded Emerging Markets could be “spilling-over”—say at a Multi-Strat fund—into  more liquid strategies like Equities Quant?  Without question the stress is nowhere close to the level seen during the most-famous example of this occurring back in Aug ’07, but the “tremors” and flow-through are definitely reminiscent.  

We saw large multiple SD / Z-Score reversals in Momentum-, Value-, Growth-, Quality-, Beta-, Up / Down EPS Revision-, R&D / EV-, R&D / Sales-, Cash / Assets- and Commodities- factors across U.S. Equities yesterday.  The simplest expression of this was the multi-year high flyer “Tech” sector as the worst performer in the S&P, while “Energy” was best; “Semis” and “Software” were hit, crowded shorts in “Consumer” and “Media” and bond-proxy “Defensives” squeezed; “Biotech” and “Medtech” were hit hard, while “Generics” and “HC REITS” were higher; Energy “pairs” screamed “unwind” etc.  

So even though the SPX tape was ‘unch,’ the violence being felt on the buyside was powerful.

 

BOTTOM LINE—it looked like a quant “gross-down” event, potentially “triggered” by the EM stress “spill-over.”

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Georgia Cops Jail an Elderly Woman for Mouthing Off to a Code Enforcement Officer

A 75-year-old woman who needs a cane to get around was jailed in Marietta, Georgia, this week for threatening to report a code enforcement officer to his superiors.

At least that’s what Gloria Walker told WSB-TV’s Matt Johnson. Marietta Police Department Officer Chuck McPhilamy has a different perspective: He claims that Walker was making “terroristic threats.” That’s what she’s been charged with—making terroristic threats.

“Certainly, we aren’t looking to charge someone who is 75 years old who is reaching out for help,” McPhilamy told Johnson, “but it’s also a day and age where we can’t simply ignore someone making threats.”

The dispute between Walker and the code enforcement officer occurred on May 29. Walker, who says she calls code enforcement a lot to complain about her neighbors, got into an argument with the man and said, “I’m getting someone to get you.”

Here’s Walker to Channel 2:

“He said he was an ex-police officer,” Walker told Channel 2 Action News. “I would be stupid to say anything terroristic against an ex-police officer.”

“I said, ‘I told you I’m going to take care of that little matter,'” she said. “And he said, ‘Are you threatening me?’ I said, ‘No, I’m not threatening you. You threaten me all the time.'”

Walker sounds like a cantankerous pain in the ass, and people who narc on their neighbors to code enforcement are often crummy neighbors themselves. But between Walker’s description of events, the police department’s tepid defense of the charges, and the pictures and footage that WSB-TV published, arresting Walker—to say nothing of charging her with terroristic threats—was an abuse of power and a waste of resources.

So she calls code enforcement too often? Put her number on a list and tell dispatchers to wave her off. So she gave a code enforcement officer guff? Let her call his supervisor. The department clearly knows she’s abusing the system. But putting an elderly hobbled woman in jail for being a cranky nuisance is obscene. Did she have a history of affiliating with terrorists or making terroristic threats? What evidence, exactly, does the Marietta Police Department have that shows Walker poses a danger to anyone? My guess is none, because if they had even a shred beyond her cryptic remark—which Walker denies making—we’d have heard it about it by now.

This looks like is a textbook case of trying to teach someone a lesson. Walker likes to push city employees around? Let’s show her the inside of a jail cell and see if that fixes her attitude. Maybe the city plans to ask a judge to put Walker on probation, and to make a prohibition on calling code enforcement be one of her conditions. (If a judge can order an adult defendant to stop smoking cigarettes, surely they can ban calling a city office.)

Regardless of what the city plans to do—I’ll be shocked if they don’t drop the charges before the case goes to court—this is an irresponsible use of police power that suggests a lack of patience and maturity on the part of city employees. You could say the same thing about Walker’s incessant complaining, but she doesn’t have the power to throw people in a police cruiser, haul them to jail, make them post bail, and publish their mugshots online. The standards for the government are and should be higher.

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Anthony Kennedy Disappointed Everybody in Masterpiece Cakeshop. No Surprise, He’s Done It Before.

One of the most notable things about Justice Anthony Kennedy’s majority opinion this week in Masterpiece Cakeshop v. Colorado Civil Rights Commission is the fact that it denied everybody what they wanted most.

Masterpiece Cakeshop owner and operator Jack Phillips wanted the Court to say that his right to religious liberty prevents the state from compelling him to create same-sex wedding cakes, since that would force him to violate his deeply held religious beliefs. The Colorado Civil Rights Commission wanted the Court to make clear that Phillips’ argument for religious liberty cannot and indeed must not trump the state’s anti-discrimination laws. If Phillips wants to sell wedding cakes, the state maintained, he must sell them to all comers regardless of race, religion, or sexual orientation.

Kennedy’s opinion said none of those things. Here is what it did say:

The Court’s precedents make clear that the baker, in his capacity as the owner of a business serving the public, might have his right to the free exercise of religion limited by generally applicable laws. Still, the delicate question of when the free exercise of religion must yield to an otherwise valid exercise of state power needed to be determined in an adjudication in which religious hostility on the part of the State itself would not be a factor in the balance that the State sought to reach. That requirement, however, was not met here. When the Colorado Civil Rights Commission decided this case, it did not do so with the religious neutrality that the Constitution requires.

Translation: Phillips won, but he did not come anywhere close to winning on the principal legal argument that he advanced. What is more, Phillips’ principal legal argument might well lose in a future version of the case (or then again it might not) so long as the government’s proceedings against him manage to avoid the taint of anti-religious bias. The real fight has been postponed until an unknown later date.

This result has left both sides feeling disappointed. But here’s the thing about that: Disappointing everybody is a classic Kennedy move. Indeed, it’s one of the hallmarks of his jurisprudence. Over the years, Kennedy has managed to dash the hopes and dreams of liberals, conservatives, and libertarians alike.

Consider his rulings on abortion.

In Planned Parenthood v. Casey (1992), Kennedy famously co-authored the plurality opinion that is widely credited with saving Roe v. Wade (1973) from being overturned. Casey both reaffirmed that abortion is a fundamental right and held that government regulations may not “impose an undue burden on the right.”

Abortion rights advocates cheered that ruling and gave kudos to Kennedy. Yet in 2007 those same advocates were left reeling by Kennedy’s majority opinion in Gonzales v. Carhart, which upheld the 2003 Partial-Birth Abortion Ban Act signed by President George W. Bush. They felt like Kennedy betrayed them.

Anti-abortion advocates were of course pleased by the result in Carhart, though they too felt the Kennedy sting. That’s because Carhart reaffirmed the central holding of Casey. As Kennedy declared in his Carhart ruling, the government may not impose “an undue burden, which exists if a regulation’s ‘purpose or effect is to place a substantial obstacle in the path of a woman seeking an abortion before the fetus attains viability.'” Kennedy disheartened the anti-abortion forces even as he handed them a victory.

As for libertarians, Kennedy’s tie-breaking fifth vote in favor of eminent domain in Kelo v. City of New London still rankles. “The most frustrating justice for us was Kennedy,” Institute for Justice lawyer Scott Bullock told me. Bullock represented Susette Kelo and the other property owners in their fight against the government land grab. “I felt like I was just not making any progress with him during the [oral] argument, and he just did not seem to be really troubled by this.”

Bullock expected Kennedy to be more receptive because Kennedy’s previous jurisprudence had been generally hawkish in defense of property rights. In United States v. James Daniel Good Real Prop. (1993), for example, Kennedy had declared, “individual freedom finds tangible expression in property rights.” But that version of Kennedy was totally AWOL from Kelo. As far as libertarians were concerned, Kennedy stabbed them in the back.

So Masterpiece Cakeshop is hardly the first time that Justice Kennedy has managed to disappoint everybody. The question is whether it will be the last time. Rumors of Kennedy’s retirement are currently circulating around Washington. Should he step down later this month, Masterpiece Cakeshop would be one of his final opinions. As a swan song for his mercurial career on the bench, Kennedy could do worse.

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